KPMG Archives - Corporate Updates

KPMG to cut 10% of US audit partners

KPMG is set to reduce its US audit partner ranks by about 10%, in a restructuring move that comes after years of unsuccessful efforts to encourage voluntary early retirements.

The decision will affect roughly 100 partners in the firm’s US audit division. According to reports, some partners had already opted for voluntary exit schemes, but the numbers fell short of what the firm needed to rebalance its leadership structure.

KPMG said the cuts are not linked to individual performance. Instead, the firm is focusing on aligning the size of its audit partnership with the actual needs of its business. The goal is to better match staffing levels with client demand and improve overall efficiency in the audit practice.

Partners impacted by the decision are expected to receive financial exit packages along with support to transition into other roles or opportunities outside the firm. Managing directors within the audit division will not be affected by this round of reductions.

The move is part of a broader restructuring trend within the Big Four accounting firms, which have been adjusting their workforce after pandemic-era hiring increases and slower-than-expected staff turnover. Many firms have faced challenges in balancing workforce size with changing market conditions.

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KPMG partner fined for AI ethics cheat

A senior partner at KPMG Australia has been fined A$10,000 (around US$7,000) for using artificial intelligence to cheat on an internal AI ethics course, highlighting the tricky balance between technology and professional responsibility. The partner reportedly fed the mandatory training questions into a generative AI tool to generate answers, breaking company rules and raising concerns about integrity in AI use.

The breach, which occurred in July 2025, was detected through KPMG’s internal monitoring system, designed to ensure employees follow proper procedures while using AI. As part of the disciplinary action, the partner must retake the training and will face a reduction in future pay. The individual has also reported themselves to Chartered Accountants Australia and New Zealand, which is investigating the case.

The case drew attention during an Australian Senate inquiry into industry oversight. Greens senator Barbara Pocock called current regulations “toothless,” noting that professional misconduct often goes unreported unless individuals come forward. The Australian Securities and Investments Commission (ASIC) has been notified but will await the accounting body’s findings before taking further action.

KPMG revealed that this incident is part of a larger trend: so far this financial year, 28 staff members, from junior employees to managers, have misused AI to bypass mandatory training tests. KPMG’s chief executive, Andrew Yates, acknowledged the difficulty of policing AI misuse, given its rapid adoption in workplaces, and stressed that the firm is refining its policies and education programs to prevent future incidents.